President Donald Trump sent the following letter [pdf here] to our nations’ governors in response to the national COVID-19 crisis:
You knew it was going to happen… The U.S. Chamber of Commerce (President Tom Donohue) begins having apoplectic fits at the thought of even stronger Trump administration policies that might undercut their Chinese manufacturing investments.
The U.S. CoC is the biggest stakeholder of U.S. multinational companies doing business in China. The Trump administration has been warning them for years to put America First in their business plans; and now with the Chinese Pandemic showing just how dangerous it is for critical manufacturing to be made in the U.S.A, chamber President Tom Donohue is pleading to keep the U.S. dependent on China.
Keep in mind, this is the EXACT SAME group who said the steel and aluminum tariffs were going to cause massive inflation driving up the price of all consumer goods and cars by thousands of dollars… It never happened; because the CoC are manipulative liars.
WASHINGTON (Reuters) – White House plans to expand “Buy America” mandates to the medical equipment and pharmaceutical sectors could worsen shortages of urgently needed medicines and delay discovery of a vaccine for the new coronavirus, over 80 business groups warned.
On the heels of more than three million new unemployment claims, Treasury Secretary Steven Mnuchin calls in to CNBC for a phone interview to discuss the coronavirus relief bill that passed last night.
Mnuchin was asked about his reaction to seeing the 3.28 million new unemployment claims reported for the past week during the interview. Mnuchin said, “To be honest, I think these numbers right now aren’t relevant whether they’re bigger or shorter in the short term.” WATCH:
Yikes, the text of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) has been released (full pdf below). The Senate took H.R.748 stripped it out, and replaced the text with this bill. The full 50 page senate record of the activity is available here.
Digging in now. However, at first blush the size of the spending seems to be a considerable state budget deficit bailout [similar to how Obamacare removed the healthcare pension liabilities from unions]. Here’s the BILL:
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Share your thoughts in the comment section….
Think about this… How weak and tenuous does a corporate financial position need to be such that being closed for one week means informing all nationwide landlords of your inability to pay the rent next week? Consider this example:
CALIFORNIA – The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis.
[…] Company chairman and CEO David Overton writes, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.” He continues, “we appreciate our landlords’ understanding given the exigency of the current situation.” The letter says that the company hopes to resume paying rent as soon as possible.
Washington DC Mayor Muriel Bowser closes the nation’s capital until April 25th, effectively closing all public gatherings for one month. [Order pdf Here]
There is a certain aspect to dèjá-vu showing up on the horizon… Welcome to an economic civil war. But first, the latest details.
WASHINGTON DC – The intent of the Order is to temporarily cease all non-essential business activities, including tour guides and touring services; gyms, health clubs, spas, and massage establishments; theaters, auditoriums, and other places of large gatherings; nightclubs; hair, nail, and tanning salons and barbershops; tattoo parlors; sales not involved in essential services; retail clothing stores; and professional services not devoted to assisting essential business operations.
The Order goes into effect on March 25, 2020, at 10 pm, through April 24, 2020 (link)
On the horizon it appears the state and regional shutdowns are going to mirror the shutdowns from Obama’s infamous sequester-fiasco from the spring of 2013. That looks like the road-map that will be followed as the coronavirus issue starts to level-off.
With caution applied, Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer announced around 2:00am ET a deal had been reached for the nearly $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) bill.
The final language for “HR.748” (stripped and newly assembled) will take place today. Looks like the senate is using an old bill, previously passed by the House, so the House can deem and pass, without formally reconvening. There are ten republican amendments. Speaking from the floor, both McConnell and Schumer made remarks describing the bill.
National Economic Council Director Larry Kudlow explains the overall picture of the legislative package as coordinated by Treasury Secretary Steven Mnuchin, and the White House economic team. The overall financial package is $6 trillion. $4 trillion of that amount is federal reserve lending authority in case needed. $2 trillion is direct economic assistance.
Democrats are still attempting to add their K-Street pet projects (foreign aid grants, performing arts contributions, union payoffs, election modifications, funds to expand abortion services, subsidies for wind farms, restrictions on cow flatulence, funds for Hollywood productions, airline emissions, turtle training classes and various social engineering topics) to the spending package. That battle continues….
Earlier today New York Governor Andrew Cuomo blasted FEMA during a press conference for sending 400 medical ventilators when his state needs 30,000. WATCH:
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However, in 2015 the New York State Department of Health specifically studied the issue, warned about a critical lack of ventilators during a pandemic, and the New York Governor made a specific decision NOT to order them: [pdf link here]
So Andrew Cuomo is blasting FEMA today for not providing something he choose not to order and prepare for in 2015. That’s a little bit unfair and hypocritical, no?
To understand the purpose and specific need of the latest Executive Order CTH can share a familiar analogy to help better conceptualize the issues.
There are several supply chains that are being affected by the coronavirus mitigation effort; two specific sectors involve healthcare products and food distribution. Today’s executive order targets both.
As a network of U.S. manufacturing continues to increase the production of healthcare products, masks, shields, ventilators and medicines; any hoarding or pricing opportunism around those items is obviously a matter of great interest for overall public health.